Unemployment Rate Down to 6.1% in June, and More

7/3/2014 8:30AM

June's unemployment rate dips to 6.1% with 288,000 more jobs, Lululemon, Regado Biosciences and GoPro among stocks to watch, "Arthur" strengthens into a hurricane, a sip of Anthem Golden Ale and a look back at July 3, 1775. Photo: Getty

This transcript has been automatically generated and may not be 100% accurate.

... morning and welcome I'm Simon Constable we have some breaking news we have news out of labor the comment that the unemployment rate has dipped to six point one percent but it's significantly better ... than economists were expecting and two hundred and eighty eight thousand jokes ... were created in the U S economy last month but more on this let's go to Sudeep Reddy ... on economics team in Washington state thanks obeying now ... Simon ... the morning this is a remarkable number turned in a thousand Odyssey was away most expectations ... for this report is significantly stronger than what we've seen for out most of the recovery and I this will ... confirm a ... time that the belief that the economy perhaps actually strengthen I'm going into the middle of this year rather than weakened as we saw with the contraction in the first and so ... all around a good number with unemployment rate dropping will find out ... what the reasons for that are better ... than one every dropping brings us closer to full when this of course that sets up a conundrum for the fat I mean I can on the Fed is not a bad problem to having a sense of what ... this is actually all in all it also family in line with the ADP payroll report they do a poll on how the economy's doing they said two hundred mm eighty one thousand ... This two hundred maybe I aam given the margins ... that's pretty much spot on that that's pretty interesting in itself ... I'm saying on the why and have a lot of those jokes three big parties was so this producing jobs ... two hundred and sixty two thousands of buses money FiveFinger Job sixteen thousand to ... usually service jobs don't pay as much as manufacturing do that ... go and that's that the story of the recovery we've seen ... a disproportionate for disproportionate share of jobs in restaurant retail hospitality jobs entered into the lower pane ... of course the U S economy is almost entirely service sector jobs ... at this point so you can see the gains come in that area ... but overall you're seeing at least on some strengthening in the labor market instead of I've that the fizzling out that we sometimes get on and that some people were fearing at this point given that makes economic data we've we've been saying for a number of months now we deftly don't want fizzled do we will stay with us today but now the stuff on the inside is the most obvious to economic swings Phil Izzo with though is only standing by the news room ... where all the time has come from thank you Brian much for being map felt a sudden what defines I did this just looks good across the board and in ... the job gains were really evenly distributed across different sectors ... of manufacturing added jobs in government added jobs this month ... aam everything really looks pretty good even the unemployment rate ... a lot of times were worried the unemployment rate is dropping because people are dropping of the labor force ... the of them the number of people in the labor force actually increased last month ... not a huge amount of the double be called the iam ... participation rate which is the matter people looking for work while working was steady which didn't fall as another thing in it has been around thirty year lows but a good thing it didn't fall but the number of unemployed tumbled the number of employed rose significantly is just all round of the report found that that is very good one of the things I think is a lot of people's mind is that participation rates ... By has the DOE monkey gets bets that ... the participation rate will rise The and that will happen ay ay ay ay I guess the apes of chilling effect on the unemployment rate itself because it will move to these ... numbers will start to climb Cragg a mini it's come a long way to go down to miss a lot of people not participate a totally I mean six point one percent and is getting alot better but still relatively high we'd like to see the unemployment rate lower than that the dissertation rate is still really well there's still loads of people are unemployed over six months and it looks like those people are not a surly doing all that well ... it's very hard to so far this the lot of looks at ... are those people getting jobs and ... will if you've been on a platter short period of time that the labor market's looking very very good but if you've been unemployed for more than six months is a lot harder to get a job yet we've we've been hearing alot about that and of cuz that's everyone is still looking for job has been out that in the new now and in the the the jokes you looking a front for ages we year when on to this thank you Brian much filth on when to go back to Sudeep Reddy as to what else the sun sets a date ... aam does this sound does a Stephen elites way to ... the Fed is saying ok with the now hike rates sooner than previously expected or is it ... too hard to say ... it's still too early to see a trend in the numbers that sustained over time for the Fed's actions then the indication you will see markets are taking chopped ... their forecasts from our where they were in the second half of twenty fifteen ... perhaps a little bit higher than the revisions on this ... latest report show that we've seen the average job growth of two in seventy two thousand a month of the last three months that significant other Fed has to look at that and the drop in the jobless rate and die and at least noticed some strengthening in the labor market ... despite some other mixed economic data so that is a good sign which is not seen wages takeoff and that's the missing ingredient here ... to get the Fed out really ... moving in in the direction of rate hikes sooner of later and I know we do like that one lead sale wages to cough thank you pray much ... on Sudeep Reddy and Phil Izzo in the C1 Wall Street banks ... after this ... welcome back to the new sub I'm Simon Constable in case you missed it we have breaking news out just a few minutes ago the Labor Department reports of the unemployed and right has fallen to six point one percent and the two hundred and eighty eight thousand jobs were created in the economy last month but is that is very ... very good it seems like people is a really good let's find out what the view from Wall Street is we don't test to shake his PNC Financial Services senior macroeconomists ... chaos thanks for joining us again ... the job ... aam does this bring a smile to place on this so when Friday ... it was ... done ... it simply doesn't mean it's a very good number two hundred and eighty thousand jobs of broad based ... across service industries across goods producing industries ... imminent decline in the inquiry his kidneys would apply to the scene in increase the labor force dissipation rate ... of that didn't happen this month but I think it will happen over the rest the past fourteen and two thousand and eight ... and I'm Captain chaos one of the things that we know that the Fed is looking at is bleach growth when not saying wage growth in a significant way yes ... how long do we have to see the sustained gains in the event I will add additions say you know of well over two hundred thousand for ... five months now it's straight ... how many more months before you start saying ma'am wages go up ... I think we'll start to see that towards the end of this year the beginning of next year we did see average every twenty earnings increased by two tenths of one percent that's about or expecting ... but still not very strong ... up there's a lot more slack in the labor market than the unemployment ... rate alone would suggest you think we will get to that point were wage growth Excel rates ... is begin ports unit to share ... just stay with us I wanna go back to where it is the Wiz on the economics front in the news room ... felt thank you Brian much for their one else have you found any the Nazi on bulls and days the last few minutes yet ... we also look at another unemployment rate because the U six rate that the wider rate that includes people who are working part-time but they wanna work full time and people are discouraged and didn't really look for work ... so that rate also fell this this month which is a good thing it didn't fall quite as much as the main unemployment rate and part of that is because they were more people last month who are working part-time but want full-time jobs so there still is ... the ... there than they were when ... you're at this time ... but there still are a lot of people out there who want jobs and that put downward pressure on wages because they're still people out there willing to fill positions ... and that's only some a lot of people of Alice tells thank you my much was applied to fill his of ... back to dust we say now from PNC ... on cost how do you think out of the market people liken to react to this when the stock trading partially withdraw the bill the future's looking up that's great but what is the stated interest rates ... in the markets as we know the markets tend to move a bit ahead of the fat ... you know I think this is generally a ... good news for financial markets are expected job growth was stronger than or expect that you're expecting ... that means that income growth in consumer spending well into two groups of the fact that wage gains remain contained so it does appear inflationary pressures are building ... out we still think that the first increase in the fed funds rate isn't going to come until the fourth quarter two thousand and fifteen ... so ... I mean the baby could be that markets will move up their expectations of the first increase in the fed funds rate ... ok will we shall say thank you very much just push and PNC Financial Services macroeconomist was a pleasant heavy on the show ... thank you ... will be back in thirty seconds ... welcome back to the New Saab on I wanted to dance to Miss the fourth of July weekend is making itself known with big caps tropical storm on upgrade Sue Hawkins from early this morning with job Last oni ... he is a WeatherBell Analytics chief major what this e joins us now from penciling it thank you Brian much for being mess up ... they surrendered ... Sullivan said that tell us about how this is going to move across ... across the bow and take off the coast and had to taken aback some most ... the outer banks North Carolina this is a nightmare scenario wrote about this even on the weekend were talking about this before people come from family ... and this is part and parcel son of the kind of work the season were forecasting a key ... they away with that situation eastern seaboard next for five years just like the nineteen fifties ... and this is shown to what happened the storms ... will intensify close to the Kurozumi sans not that you would see oh two invested in the cycle that were at ... the rate major hurricanes is enough time in seven years back in the fifties ... so we're going to see more of this and this is probably just a warning shot other us a season a ... forecast preseason forecasts had been stuck in a specific details of the storm ... the big problem is it's going to intensifying quite quickly ... before makes landfall I think it's going across the outer banks in this is a ... big big resort area on their biggest holiday of the year July fourth ... and ... Yellen Hui Mei for their October for ... that the real problem for the people that live there but it's a real problem economically now ... because of the fact the I grow learn and resort town of the shore ... dating me this very very badly ... you find about one out of their profits made on the July fourth weekend was gorgeous generally do what thou ... me of that so that is not notify them of this is interesting that this storm did not fall off the coast of Africa and full ... low down the coast and then so the move stop ... and that's what ... we seen this year ... that directive intensifying African wages would have to wait till they get ... a ride north of the law medicine or approaching the home is ... this is what happened fifty forty Inotera's legendary storm and wingman SOEs and ... then buy Puerto Rico it went by Puerto Rico's a tropical storm and travel develop similar to this we have a cold front come down ... on him to the Bahamas and start spinning away ... and that's a big gap probably get this year that the closer you walk to the coastline ... the more a storm is likely to intensify until it reaches Lane soak up all this will stay well southeast of doing this is just a cold front coming through ... however as I can ... love we are coming up the coast is coming up because ... it's in the Carolinas directly database ... that ... Russia is gonna be a southern or eastern for six to twelve hours out their own tomorrow night in a Saturday ... and then the big thing about the weekend in the Northeast is in who would run all he ... okay ... so we have to leave it that ... I'll be an interesting week and we haven't lost a cent of the study ... WeatherBell Analytics chief me to religiously thank you for your time ... well tomorrow shuffle you might want to sing the national anthem but what about drinking and and from a golden ale sounds fun ... it's time fo we can set tells Passi House the blues ... and I have my first time ever this area is really ... over lovely looking they are perfect for the morning ... this is no longer is an angle is an ale it's the very lager like T O I will say ... it's a golden ale it's it's kind of like the first step up from a lot are very very lightly hopped ... on the ... entrance very clean ... up fairly crisp will the sweetness I'm grinding for this because the smell coming off this ... this is the via Sky ... it's most of the small to average weeknight into its color Roma it's a nice to roam up ... in thinking I'm thinking I owe but not like to have the right right ... so with this is an American made one ... itself away might think it's it's up to from Baltimore right exactly on the great backstory on this um you know Baltimore ... Maryland wanna be the next ... one be the next Brooklyn wanna be the next ... port than me would be the next Portland Oregon they wanted the Abheek Center for craft brewing ... odd that the growing quite quite well over the last few years ... aam this is a company called Union craft brewing ... out of Baltimore alma of Baltimore is the home of Francis Scott key wrote our national anthem ... of two hundred years ago and and this celebrates the Vasella laces that so the call that dampened ... the it's a view to honor the Bicentennial pm them and it's an all American beer ... made with American ingredients and ... so what it looks quite as pleasant on how much we just putting more of a body that people on on Birmingham's also will ramble on about this this man I just say said it tasted actually have a can of this that sites like one of the death ... of another week and it is fantastic I I can't recommend enough particularly when it's hot and humid right you don't necessarily won the summits of only having its easy drinking beer out there ... during much um shells passing the Blues must up I'm Simon console everybody sites I follow quite delightful and we can't ... chess ... 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